Markets in USA are showing great resiliency no matter what headwinds it faces.
First it was Fed's direction for interest rates, it calmed down
Secondly it was USA vs CHINA trade squabble, it calmed down
Thirdly it is Corona Virus and its worldwide impact, it is calming down also.
Through all of the above and many mini crisis like Iran attack, impeachment, US markets kept making new all time highs...
WHY US markets are making series of all time highs?
IT IS because since Y2K boom...US stock market went into reverse and hit lows in 2008...an 8 year reversal.....
All we are doing is currently making up for lost time from 2000...a 12 year wait till we came back to 2000 highs......
From 2012 to November of 2018...we made very gradual new highs.....
Since November of 2018....we are having a sustained uptrend where TAPE is ignoring / digesting many issues quickly.....because it wants to go higher....
Time wise this uptrend is only 15 months old....in a very slow uptrend making series of new highs.....
WHY this uptrend is having legs.....because " froth is gone from most world economies " they all having to adjust to slowing GDP worldwide, thus it is more efficient in projecting Sales & EPS.....
Reckless behavior of Y2K is gone and conservative / sustained move is happening....
SO..have key stocks in your portfolio where growth is sustainable going forward.....
5G is a major catalyst going forward, still in early stages.......
Get ready for another leg UP in this market...fast and furious!!!!!
Good luck with your own analysis and comfort level.
BLOG does NOT give buy or sell.
Saleem
5 comments:
Hi Saleem,
Last week: +0.08% (YTD: +5.91%)
Notable Winners: IQ PLAN AVLR
Notable Losers: PINS PS ADPT
It was a tough week with every reporting company dropping after earnings (LYFT PS DDOG). Despite that, the portfolio still managed a tiny gain thanks to strength in other stocks. This market is definitely resilient and you can feel the money flow coming in each day. Growth stocks remain buoyant as unsteady worldwide economic activity persists, but we should be watchful for another shift to cyclical stocks should the world re-accelerate based on monetary stimulus.
Holdings: DDOG AVGO AVLR PLAN CSOD PS IBP LITE LYFT PINS, cash 0.0%
Stocktrader
Hi Stocktrader,
Last week UP 8.23%
YTD loss 10.12%
Saleem
Hi Saleem,
Sold PINS @ 23.12
Bought IQ @ 25.07
I needed cash for the IQ purchase on this pullback and PINS was the source. It hasn't performed well after what appeared to be good earnings, so maybe the potential competitive landscape is eroding valuation.
Stocktrader
Hi Saleem,
Trimmed DDOG @ 47.15 to take some profits after it had become my largest position, but it very expensive.
Added to IQ @ 25.09
Added to LYFT @ 44.68
These were my smallest positions, and both are seeing call buying activity today.
Stocktrader
Hi Stocktrader,
Good luck with IQ and more LYFT....
Saleem
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